The Minister of Aviation and Aerospace Development, Festus Keyamo, has ordered that the operations of Arik Air should be grounded.
The Minister or the Ministry of Aviation has not issued any statement to explain why that directive was given but inside source indicated that the action was not unconnected to legal issues.
Recently Abuja Court had ordered sale of Arik Air’s aircraft to offset debts owed Arthur Eze and others by the airline. …CONTINUE READING
The Court issued a significant judgment ordering the sale of aircraft, hangar and movable assets belonging to Arik Air Limited.
The Court specifically ordered the sale of aircraft bearing registration numbers B737-700/5N-MJF; B737-0–/5N-MJQ; Dash 8-Q400, 5N-BKK.
Reacting to the order of the Minister, Asset Management Corporation of Nigeria (AMCON) which is currently managing the airline under receivership, issued a statement signed by Chief Executive Officer, Captain Roy Ilegbodu, stating that the management of the airline under receivership was dismayed by the directive to ground its operations by the Minister.
“The management of Arik Air (In Receivership) is dismayed by the sudden order issued by the Honourable Minister of Aviation to ground our Aircraft. This decision, made without warning or consultation, has serious repercussions for our valued passengers, dedicated employees, and the broader Nigerian economy.
“Our priority has always been to connect people and facilitate commerce, especially on critical domestic routes. The grounding of our fleet disrupts these vital services, leaving passengers stranded and inflating already high travel costs. This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities.
The decision also disregards ongoing judicial processes,” the airline said.
It also recalled that on February 26, 2016, a judgment was made in favor of Atlas Petroleum International Limited and Engineer Arthur Eze. However, there is an ongoing case in the Federal High Court, where Asset Management Corporation of Nigeria (AMCON) is asserting its secured interest in Arik’s assets.
“Despite this, a writ of attachment was issued on July 18, 2024, targeting our Aircraft, subsequent to which, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024 clearly instructed all parties to maintain status quo. We therefore are perplexed as to the grounding of our fleet, which is an overreach of the ongoing judicial processes and directives of court.
“We believe this action undermines the rule of law and sets a dangerous precedent, prioritizing unsecured private interests over the public good and the rights of secured creditors. We are committed to following the legal process and have full faith in the judiciary to resolve these matters fairly.
“Arik has always been a proud partner in Nigeria’s growth, providing reliable and safe air travel. We urge the authorities to reconsider this decision, lift the grounding order, and allow us to continue serving the public and supporting the economy. We stand with our passengers and employees during this challenging time and are working tirelessly to resolve this situation. Your support and understanding are greatly appreciated.
“We sincerely regret any inconvenience caused to our esteemed passengers,” the statement also said.
The money, which was borrowed under the management of the founder of the airline, was not serviced by AMCON because the government agency claims it only pays creditors.
